ENGLAND delivered a Boxing Day knockout to leave Australia on the verge of Ashes heartache in Melbourne.

A miserable low of 98 all out was the sum of Australia's parts on a glorious day for England's bowlers who ripped through the home side in less than 43 overs.

James Anderson and Chris Tremlett stood tall to unwrap four wickets each, while Tim Bresnan chipped in with a couple on a helpful MCG pitch and in the face of some loose batting.

Australia's hope of making the Boxing Day Test a follow up procession from their Perth heroics were dashed almost instantly on a desperate day in front of nearly 85,000 fans.

And by the time Andrew Strauss and Alastair Cook had added an unbeaten 157 to provided a lead of 59 by the close, Australia's horror show was complete.

Bresnan replaced the leaky Steven Finn, but it was Anderson and Tremlett who took up the starter's orders once skipper Strauss had won the toss and inserted Ricky Ponting's men.

The series has followed a pattern of lively wicket-taking starts to each of the Tests and this one should have been no different when Shane Watson edged Anderson to the normally reliable Paul Collingwood at 3rd slip who couldn't cling on fifth ball of the match.

Hoping that the tone hadn't been set for the rest of the team, fans could only watch on in horror as Kevin Pietersen shelled an even simpler chance in the gully to give Watson his 3rd life before he had even scored a run.

England though could sense there would be more chances if they remained patient and in just the fourth over of the day Tremlett proved them right with a ball that climbed off a length to take the shoulder of the bat and loop to Pietersen to make amends.

Ponting was again playing the role of Australia's third opener and with a fractured little finger as well as having failed to make an impact in the series thus far the pressure was on.

He almost sold Phil Hughes down the river with an early run out chance, but Alastair Cook missed the target before England gambled their first review on a catch down the leg side that only brushed Hughes' shirt.

The pair lasted ten overs together battling away in the face of some high quality seam bowling that had plenty of help from the conditions, but just when patience was paramount, Hughes lost his and started the avalanche.

He flashed hard at Bresnan to be caught by Pietersen for 16, while Ponting had a little nibble at one outside off stump to edge Tremlett to second slip and leave their team reeling at 37-3.

Mike Hussey had been the immovable object throughout the series so far which is why England gambled on another review to get rid of him. The lbw shout was good but not right.

Thankfully Anderson was ready to fill the gap and get him out the old fashioned way, with a healthy edge through to the keeper and by lunch the Aussies were 58-4 and in disarray.

That used to be the sort of score that Steve Waugh and Adam Gilchrist would relish and before too long would have their team back in total command, but this Aussie side have no such backbone.

Steve Smith is not a Test number six and Michael Clarke is no Waugh.

Anderson accounted for both batsmen as they prodded forward with their bats as their feet went nowhere and Matt Prior was only too happy to gather the edges as they came.

The procession continued with Brad Haddin and Mitchell Johnson, two men who can be dangerous with the bat and turn average scores into huge ones, but their mojo was back in Perth and they both fell with a mere 77 on the board.

Peter Siddle and Ryan Harris are in the team to take wickets but in the scheme of things their double figure contributions were huge, however two more catches for Prior stopped them from getting carried away.

And there it was, 98 all out in less than 43 overs, Australia's lowest ever score at the MCG against England and their lowest score at home since the Windies blew them away in 1984.

There were heroes galore for England, four wickets apiece for Anderson and Tremlett, plus a brace for Bresnan, but the six catches for Prior was a huge moment for him.

He became just the sixth England keeper to take six catches in an innings and he never looked like dropping a thing.

With the Aussies all wrapped up, Strauss and Cook set about backing up their bowlers and they did just that and more to put their side into the lead without losing a wicket.

Along the way Strauss passed 6,000 Test runs and became the 11th man to do so for England, while together the pair notched up their 10th century opening stand, second only to Jack Hobbs and Herbert Sutcliffe.

The Australian pace attack couldn't find anywhere near the same swing or seam that the English bowlers did, but even if they did, the way Strauss and Cook left the ball was a lesson in itself.

Strauss finished the day on 64 not out and Cook racked up a bright 80 not out to continue his excellent form, while Australia scramble around for a hero to take just one wicket.